P&G Canada Taps Exel for Canadian Distribution Center

3PL to handle co-packing and product customization operation in new Brantford facility

3PL to handle co-packing and product customization operation in new Brantford facility

Toronto — March 15, 2005 — Procter & Gamble has tapped third-party logistics provider (3PL) Exel to operate the co-packing and product customization site in the new Canadian distribution center in Brantford, Ontario.

The customization area of the distribution center is expected to begin operations in October 2005 and will handle assembly of in-store displays and promotional packaging.

"Our new Brantford distribution center has a sizable space dedicated to co-packing and product customization," said Tim Penner, P&G Canada president. "We received strong proposals from several vendors for the operations of this area and are pleased to announce Exel as our selection. We believe that this partnership will increase our long-term operational advantage to offer customized products for the Canadian marketplace."

The key factors in evaluating all proposals and the eventual selection of Exel were cost competitiveness and operational capability, the 3PL said. Under this contract, Exel will be responsible for a significant portion of P&G's customization and contract packaging business.

"We are thrilled to be selected to operate the co-packing and product customization site at P&G's new Canadian Distribution Center," Mark Richards, Exel's senior vice president of operations. "Our team is looking forward to extending our synergy between managing the distribution center and operating the product customization site."

As previously announced, P&G is relocating its Canadian distribution center to Brantford, Ontario with Exel, which acquired Tibbett & Britten in 2004, as the third-party logistics provider. The 775,000-square-feet site is expected to open by June 2005. The total investment is estimated to be $70 million (Canadian). The distribution center will serve P&G's $2 billion (Canadian) national business.

For more information on the latest trends in the logistics space, see the article "The Analyst Corner: Fulfillment & Logistics" in the October/November 2004 issue of Supply & Demand Chain Executive.
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